Which are The Biggest Mortgage Lenders in The UK?

Mortgage Lenders

When searching for a mortgage lender, the bank or building society that is the best option for you will be determined by several variables. After you’ve chosen whether you want a mortgage with a fixed rate or one with a variable rate, you’ll probably start looking into which financial institutions provide the mortgages with the lowest interest rates after you’ve made your decision.

However, you should also look at the entire cost of your mortgage and consider the expenses associated with setting up the mortgage. This includes the monthly repayments and any costs incurred during the original deal term. After this time has passed, your rate will return to the lender’s usual rate, and you can switch to a new offer if you so choose. It’s not always the case that a better bargain will have the lowest total cost, even if the interest rate is lower.

What do mortgage lenders do?

Mortgage lenders are the ones that hand over the cash to the borrower so that they can purchase a property. As was said before, mortgage banks are also considered mortgage lenders. This is because similar to credit unions and banks; mortgage bankers offer borrowers the funds necessary to purchase a home.

The distinction is that a credit union or bank would often use its capital to finance your loan rather than using outside investors. In addition, unlike mortgage bankers, they do not always resell your mortgage to an investor once they have taken it from you.

Mortgage companies can be further broken down into seven primary categories: mortgage bankers, direct, wholesale, warehouse, retail, correspondent, and portfolio lenders. Mortgage companies are the most common sort of mortgage lender. The primary point of differentiation between these various creditors is how they finance loans.

How to find the best mortgage for you?

How you shop for a mortgage can impact how much you pay each month and how much you spend overall on a loan. Doing your homework before making a purchase can help you save money and ensure that your experience of purchasing, owning, and selling a house will be favorable.

Because of the unique circumstances surrounding each prospective buyer of a house, no one kind of mortgage is suitable for everyone. It’s possible that the mortgage that’s ideal for one individual won’t be the one that’s greatest for you and your property. These steps help you choose the most suitable mortgage for your unique circumstances.

Aware of your financial plan

Establish a realistic spending limit for the purchase of a property. Evaluating your current financial condition before beginning the search for a loan or even a new residence is essential. It is vital to ensure that you will be able to pay for the purchase of a house since this is one of the most expensive things a person can do in their lifetime.

Remember this important fact as you continue the process: mortgage companies are salespeople. They earn money off your loan, and often they will accept you for a much more significant amount than you can afford to pay back.

Select the appropriate mortgage

Determine which mortgage product best fits your needs and those of your property.

There is a mortgage out there that is the ideal combination of terms and conditions for you, your credit history, and the property you want to purchase. To begin, you should get familiar with the many kinds of mortgages available to choose which one best fits your needs.

Make sure you pick the right lender.

Find the proper lender for you by interviewing with them and asking pertinent questions. ​​Finally, after you have a solid notion of the kind of loan you want to receive and how much you can pay back, you can start phoning lenders and having conversations with them.

What documents do mortgage lenders need?

When done correctly, contract-based underwriting is straightforward. As a result, demonstrating your income and risk status is very simple:

  • Identification document (a copy of a passport or driver’s license will do);
  • A utility bill, credit card, or bank statement as evidence of your residence
  • A copy of your most recent contract attesting to the agreed-upon fee;
  • A copy of your most current CV, updated to reflect your most recent employment history;
  • Bank statements that attest to contract profits, which are typically three months old but might be older or younger.

Identify the mortgage you need

The diversity of mortgage packages available in the UK can be daunting for people unfamiliar with mortgages. Fixed-rate and variable mortgages are the two primary kinds of mortgages in the UK. Additionally, there are a few specialized kinds for specific situations. Here is a quick summary of the most typical mortgage types in the UK.

Mortgages with fixed rates

These mortgages have fixed interest rates for a typical two or five-year duration. After the fixed-rate term, the interest rate will typically switch to the lender’s standard variable rate. Around 75% of mortgages in the UK are given as fixed-rate mortgages, reflecting the preference of UK homebuyers for these loans. After the fixed-rate term, homeowners often refinance their property since the usual variable rate can be much more costly. 

Mortgages with adjustable rates

Mortgages with variable rates are subject to change based on the prime rate. The standard variable rate (SVR), often used in variable-rate mortgages, is a rate established by individual lenders and is subject to change at any moment.

Affordable mortgages

This is a kind of SVR mortgage; however, the SVR has been discounted (usually for around 2–3 years) for a bit of time. When comparing mortgage offers in the UK, you must factor in the discount and the lender’s SVR mortgage rate.

Mortgages on a tracker

These SVR mortgages can help you avoid a surprise increase imposed by your specific lender since they follow the interest rate from another source (often the Bank of England).

Mortgages with fixed rates

This implies that the interest rate on a variable-rate mortgage is limited and cannot increase by more than a certain amount. In the UK, certain capped-rate mortgages are available at a higher standard rate than comparable variable-rate mortgages.

Inverse mortgages

Your savings account balance is utilized to lower the interest paid on these mortgages since they are connected. Offset mortgages have the potential to reduce monthly payments or decrease the duration of the loan.

Mortgage for bad credit

It is feasible to get a mortgage even if you have terrible credit. Some lenders provide home loans tailored exclusively for those with either no credit history or poor credit history. Bad credit mortgages, unfavorable or subprime, are the most frequent names for these loans. However, there are other names for them as well.

Mortgages for borrowers with poor credit operate in a manner that is similar to that of conventional mortgages. As a result, you will be required to make consistent monthly repayments, on top of which you will accrue either fixed or variable interest. Nevertheless, you should be aware of a few significant distinctions between the two.

Find a mortgage broker.

The number of licensed mortgage companies in the UK has increased to meet the growing demand for their services as the housing market in that country continues to expand due to new construction projects and different government-supported home purchase programs. Because there are so many options available, selecting a mortgage broker you can trust should be more straightforward.

To begin, you can use our whole market mortgage expert search tool, which is designed to assist you in locating a fully qualified mortgage broker in your local region. You will have a wide variety of choices, but before settling on one, you should talk to several different mortgage brokers to see which of them you get along with best.

You can also meet with a mortgage adviser at a local bank, building society, or real estate agency at a time that’s convenient for you; however, keep in mind that a mortgage broker employed by a bank or building society is likely to be limited to selling the institution’s mortgage products.

Best Mortgage lenders-

When comparing mortgages, you should consider the fees, interest rates, and customer service each lender provides. This is because the quality of a lender’s customer service is one of the most crucial factors.

We can assist you in selecting a lender that has satisfied clients who are making their way up the property ladder. Below we will discuss the Best Mortgage lenders:

The fastest mortgage lenders

Coventry Building Society

It has the most excellent transparency score in the industry and has consistently been in the top three of Fairer Finance’s mortgage tables since the company’s first creation of those tables in 2014. This translates to the company being as transparent as possible with its clients on all the fees associated with obtaining one of their mortgages.

In addition, it has the most acceptable track record for complaints, with the Financial Ombudsman Service only revoking one of its judgments out of every 20 instances.


Principality takes the crown as the company with the most satisfied clients in the mortgage industry, even though it comes in at a respectable second position overall in our rankings of customer experiences.

This building society, which has its headquarters in Cardiff, is an integral part of the fabric of Wales; nevertheless, you do not have to be a resident of Wales to take advantage of its excellent customer service. It also has a good track record regarding complaints, much like Coventry.

The best mortgage lenders

First Direct

For the better part of the last 20 years, First Direct has maintained its position as the company with the highest customer ratings. Not just about mortgages but also about bank accounts and credit cards, the online bank member of the HSBC group is consistently located in the highest tier of our customer experience rankings.

Because of this, people put their faith in them more than any other mortgage provider. You cannot get a mortgage from First Direct via a broker. To communicate with them, you will need to give them a direct call, as the name says.

Yorkshire Building Society

The Yorkshire Building Society is one of the best mortgage companies in the United Kingdom and has locations throughout the nation. It has consistently ranked towards the top of our mortgage tables and is a strong performer across all four aspects of our ratings for the quality of the service we provide for our customers.

Lenders for bad credit

Lending Stream

Lending Stream began in 2008, offering short-term loans with a 6-month payback schedule. They employ a combination of examining individual situations, advanced data analytics, and valuable credit ratings to accept loan applications.


Cashfloat is a respected direct lender of payday loans with around 100,000 satisfied customers. They concentrate on consumers with past negative credit scores who want to improve and ensure the loan is reasonable for the customer. 

Online mortgage lenders


Peachy is a direct lender that delivers short-term loans varying from £100 to £1000 to consumers in need of emergency cash. You can apply online using your phone, tablet, or PC, and in many instances, the money will be sent into your account within an hour. Peachy short-term loans are repayable in 1 to 12 months.

THL Direct

THL Direct provides rapid, short-term loans ranging from £125 to £500 with a daily interest rate of 0.8% on the amount borrowed. There are no upfront or late fees, interest, or default costs. However, first-time borrowers can only borrow £125. 

The biggest mortgage lenders


Short-term loans are Quickquid’s area of expertise; the firm is a partner in the Pounds to Pocket lending network. Customers can obtain a preapproved loan in minutes. If a consumer needs assistance or support, they can utilize their live web chat, previously unavailable on other loan websites. 

Creditstar UK

Creditstar is a payday loan mortgage company that promises to process applications in less than 10 minutes and approve them in less than an hour. First-time users can borrow up to £300, while recurring borrowers can borrow up to £700, repayable over six months.


Is it better to go through a lender or bank?

Mortgage lenders are experts in lending. Banks specialize in various areas, including personal banking, lending, and investing. There isn’t a clear winner – several things will influence your selection. Finally, your decision can come down to whatever firm gives the most significant rate, the lowest fees, and the most satisfactory customer service.

Is it cheaper to get a loan or a mortgage?

Even with the arranging costs, a mortgage is likely less expensive than a personal loan. However, to be confident it will provide the best bargain, you must examine the cost of borrowing.

How can I get a bigger mortgage in the low-income UK?

Obtaining a more extensive mortgage with a low salary might be difficult, but there are options. By following a few easy principles, you can get the most effective rate while still having enough money to make your monthly installments.

What will mortgage rates be like in 2022?

The current average rate for a 30-year fixed refinancing is 5.69%, while the rate for a 20-year fixed refinance is also 5.69%, the rate for a 15-year fixed refinance is 4.97%, and the rate for a 10-year refinance is 4.90%.


Our list, as mentioned above, makes it much easier to choose mortgage lenders or companies. These reputable companies make it simple to fix any issues that prevent you from applying for payday loans online due to poor credit or credit score damage. So, protect yourself by looking for legitimate loans for those with terrible credit that don’t run a credit check.

Latest from Blog